- The DXY remains close to the 103 zone during the session on Wednesday after a brief fall by comments dovish of the Fed.
- The publication of the minutes of the Fed and the surprising pause in the Trump tariffs raised the feeling in the short term, but underlined the concerns about long -term inflation.
- The price action is maintained below the key mobile socks; The resistance accumulates about 103.20 while the immediate support is around 101.80.
The US dollar index (DXY) is quoted around the 103 area during Wednesday’s session, stabilizing slightly after the recent sales pressure, which took it below 102.00. The small rebound continues to the publication of the minutes of the March meeting of the Federal Reserve (FED), where those responsible for monetary policy indicated “difficult exchanges” ahead, citing risks of greater inflation along with a slower growth.
President Donald Trump’s abrupt announcement of a 90 -day suspension in most tariffs added fuel to the market rally, sending Dow Jones to a strong increase. However, DXY’s bear technical profile suggests that recovery could face winds against, with multiple indicators still showing warning signals.
Daily summary of market movements: the US dollar clings to recovery after fed cautious signals
- FOMC minutes revealed a broad consensus to maintain stable rates due to the persistent risks of inflation and the growing uncertainty about trade and growth dynamics.
- Participants pointed out that inflation could be more persistent than anticipated, with downward risks for the labor market and economic activity in general.
- Fed officials warned that sailing between inflation control and employment support could be increasingly complex if tariffs continue to distort the perspectives.
- President Trump announced an immediate suspension of reciprocal tariffs and 10% for 90 days – excepting China – impulsing the appetite due to the risk in the actions.
- Despite optimism, those responsible for monetary policy indicated weakened GDP projections for 2025 and 2026, with the basic perspective of the Fed still pointing to epispable cuts.
Technical analysis
The American dollar index remains under pressure even while trying to build a ground near the 102nd zone. The indicator of convergence and divergence of mobile socks (MACD) shows a sales signal, while the relative force index (RSI) is around 40, reflecting a neutral tone. Supporting the bearish case, the key mobile socks such as the simple mobile average (SMA) of 20 days (103.63), 100 days (106.53) and 200 days (104.81) continue in a downward trend. The 10 -day exponential (EMA) mobile average and the 10 -day SMA, both around 103.20–103.38, also reinforce the downward pressure. The resistance is found in 102.62, 103.21 and 103.38, while the initial support is observed around 101.83. If this soil is broken, a deeper setback could be developed towards the psychological level of 100.00.
Commercial War between the US and China Faqs
In general terms, “Trade War” is a commercial war, an economic conflict between two or more countries due to the extreme protectionism of one of the parties. It implies the creation of commercial barriers, such as tariffs, which are in counterbarreras, increasing import costs and, therefore, the cost of life.
An economic conflict between the United States (USA) and China began in early 2018, when President Donald Trump established commercial barriers against China, claiming unfair commercial practices and theft of intellectual property by the Asian giant. China took retaliation measures, imposing tariffs on multiple American products, such as cars and soybeans. The tensions climbed until the two countries signed the Phase one trade agreement between the US and China in January 2020. The agreement required structural reforms and other changes in China’s economic and commercial regime and intended to restore stability and confidence between the two nations. Coronavirus pandemia diverted the attention of the conflict. However, it is worth mentioning that President Joe Biden, who took office after Trump, kept the tariffs and even added some additional encumbrances.
Donald Trump’s return to the White House as the 47th US president has unleashed a new wave of tensions between the two countries. During the 2024 election campaign, Trump promised to impose 60% tariff particularly in investment, and directly feeding the inflation of the consumer price index.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
